5 Best Affordable Stocks to Buy Under $5

In this article, we discuss 5 best affordable stocks to buy under $5. If you want to see more stocks in this selection, check out 12 Best Affordable Stocks to Buy Under $5. 

5. EQRx, Inc. (NASDAQ:EQRX) 

Share Price as of December 17: $2.1800
Number of Hedge Fund Holders: 25

EQRx, Inc. (NASDAQ:EQRX), a pharmaceutical company based in the United States, produces medications primarily for treating cancer and immune-inflammatory diseases. It is dedicated to researching and providing novel medications to patients at significantly reduced costs.

The company made remarkable progress with launching its Phase 3b, US-led comparative research with aumolertinib, and accepting EQRx’s first submission by a global regulatory agency. In addition, the business disclosed critical clinical data that supported the strength and quality of its key cancer projects. The EQRx, Inc. (NASDAQ:EQRX) team is focused on moving these efforts closer to regulatory approval, establishing its Global Buyers Club, and maintaining its solid financial position. In terms of liquidity, the business reported $1.5 billion in cash equivalents, cash, and short-term investments as of September 30. It forecasted its cash runway beyond 2028, up from the previous guidance of 2025.

4. Nuvation Bio Inc. (NYSE:NUVB) 

Share Price as of December 17: $1.7700
Number of Hedge Fund Holders: 28

Nuvation Bio Inc. (NYSE:NUVB) is a biopharmaceutical company in the clinical stages. The company’s unique portfolio comprises six innovative and mechanistically diverse oncology therapeutic product candidates, each targeting some of the most difficult-to-treat cancers. In addition, the business is advancing six fully owned compounds resulting from therapeutic discovery and development projects.

Nuvation Bio Inc. (NYSE:NUVB) is encouraged by NUV-868’s ongoing trial success and anticipates introducing Phase 1b combination cohorts later this year. The company expects that it will help people comprehend the potential benefits of this therapy for a wide range of patients with advanced solid tumors.

3. Opendoor Technologies Inc. (NASDAQ:OPEN) 

Share Price as of December 17: $1.2600
Number of Hedge Fund Holders: 41

Opendoor Technologies Inc. (NASDAQ:OPEN) provides a digital residential real estate platform allowing users to purchase and sell their property online. The “iBuying” company offers cash to homeowners in exchange for their homes, which it resells on the market. The stock, which went public in late 2020, has decreased by more than 60% in the last year.

Opendoor Technologies Inc. (NASDAQ:OPEN) is in a difficult situation due to declining real estate demand and slowing housing prices. Home prices have skyrocketed since the coronavirus pandemic broke out due to a lack of inventory, historically low loan rates, and tremendous demand for real estate. The Federal Reserve has raised interest rates to curb rising inflation and unsustainable expansion in the housing market. And it seems to be effective. When interest rates are increasing, the iBuyer business model is ineffective. However, the good news is that investors can get Opendoor Technologies Inc. (NASDAQ:OPEN) for a very low price and wait for the long-term growth catalysts to kick in.

In its Q4 2021 investor letter, Baron Funds mentioned Opendoor Technologies Inc. (NASDAQ:OPEN). Here is what the fund said:

“The Fund invests in secular growth and innovative businesses across all market capitalizations, with the bulk of the portfolio landing in the large-cap zone. The Fund is categorized as US Large Growth by Morningstar. As of the end of the fourth quarter, the largest market cap holding in the Fund was $2.5 trillion and the smallest was $791 million. The median market cap of the Fund was $27.5 billion.

The Fund had $1.7 billion of assets under management. The Fund had investments in 63 securities. The Fund’s top 10 positions accounted for 45.4% of net assets. Fund inflows were positive for 2021. We sold Opendoor Technologies Inc. (NASDAQ:OPEN) because we identified issues relating to our long-term theses in the company, and we decided to exit the positions to fund other purchases.”

2. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) 

Share Price as of December 17: $1.0200
Number of Hedge Fund Holders: 33

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) is an outdoor advertising firm with a varied portfolio of roughly 500,000 print and digital displays in 31 countries spanning North America, Europe, Latin America, and Asia, reaching millions of people on a monthly basis. 

CCO is present in 41 of the top 50 and the top 20 designated market areas (DMAs) in the United States. With a concentration on heavily populated metropolises, its European portfolio consists of 17 nations (16 European countries plus Singapore). CCO’s extensive reach enables them to give marketers broad reach and frequency across the country.

Over the next three years, Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) expects its continued investment in digital installations to support sustained growth. Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) can provide its clients efficiency and value that has never been seen before thanks to digitalization and RADAR-based programmatic buying improvements. CCO is now undervalued due to the pandemic disruption, but it is likely to rebound.

1. Cazoo Group Ltd (NYSE:CZOO) 

Share Price as of December 17: $0.1300
Number of Hedge Fund Holders: 27

Cazoo Group Ltd (NYSE:CZOO), which was launched in 2018, sells used automobiles in the United Kingdom and Europe. 

The share price of Cazoo Group Ltd (NYSE:CZOO) has plummeted significantly during the past year for several reasons. Of course, the UK’s high inflation rate is the first reason. Interest rates are rising in tandem with strong inflation, which is also unfavorable. The war in Ukraine has caused fuel prices to rise along with oil prices, which is further depressing the value of the company’s stock.

Despite the exceptionally challenging macroeconomic environment in the UK, Cazoo Group Ltd (NYSE:CZOO) managed to significantly increase its market share during the third quarter of 2022. It achieved over 100% growth with UK revenues of £347 million and UK retail sales of 18,889 units in a used car market that had experienced a general decline because of the situation. Cazoo Group Ltd (NYSE:CZOO) anticipates ongoing excellent performance in Q4, with UK retail unit sales continuing to rise at over 100% YoY and their UK Retail GPU showing considerable additional improvement.

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